The ASX 200 finished the shortened week up 44 points to 7523 (+0.6%). Positive leads and a solid resource sector helped the index close up 45 points for the week. Resources powered ahead, BHP up 1.4%, FMG up 1.3% and gold miners doing well too, NCM up 1.8% and NST up 4.2%. RED continued its charge up 7.2%. Uranium stocks in demand today again, PDN up 6.0% and BOE enjoying its honeymoon up 6.1%. Lithium stocks consolidated recent gains, AKE up 2.0% after a positive outlook statement and a ramp-up in production. Energy stocks better on oil price rise, STO up 1.1% and WPL rallying 1.1% as it seeks secondary listings in London and NY. Industrials showed modest gains. Travel stocks rally on Delta results in US. QAN up 7.1%, FLT up 5.0% and WEB up 7.5%. Healthcare was better as US truck issues being sorted, CSL up 0.8% and FPH up 1.0%. Tech better with CPU up 1.1% and XRO up 2.0%. The index rose 1.1%. In the banking sector, a combo of JP Morgan results and falling bond yields together with disappointing BOQ results clobbered the big four. BOQ dropped 6.3% whilst the Big Bank Basket slipped to $190.88 (0.3%). NAB a big faller down 0.7%. Insurers sold and other financials mixed. In corporate news, UWL agreed to its 500c bid from Morrisons. Unemployment numbers came in as expected with the headline at 4.0%. Albo memorising the numbers over Easter. In Asian trade, Japan up 1%, China up 1.5% and HK up 0.8%. 10-year yields back below 3%.
End of Day Podcast – Thursday, April 14
- Winners: WEB, YAL, RED, QAN, DGL, BOE, PDN, CXL
- Losers: BOQ, OCL, Z1P, Z1P, HT1, SYA, INA
- Positive sectors: Iron ore. Gold miners. Energy. Healthcare. Tech.
- Negative sectors: Banks.
- High 7529 Low 7485. Narrow range again. Easter beckons.
- ASX200 up 40 points this short week.
- Triple witching tonight in US. Expect volatility.
- Big Bank Basket: Steady at $190.88 (0.3%).
- All-Tech index: Up 1.1%
- Gold: Steady at $2645
- Bitcoin: Slightly better at US$41351
- Aussie Dollar: Steady at 74.60c
- 10-Year Yield: Big pullback on jobs numbers. Back to 2.97%.
- In Asian trade, Japan up 1%, China up 1.5% and HK up 0.8%
- US Futures: Dow up 68 Nasdaq up 58
Stocks on the Move
- RED +7.23% rally continues.
- QAN +7.07% big weekend. Delta numbers in US help.
- WEB +7.54% FLT +5.01% travel stock bounce.
- PDN +6.04% uranium kicks again.
- BOE +6.05% uranium play.
- BCB +9.84% coal on fire.
- LRS +8.11% capital raising at 16c.
- Z1P -4.65% coming undone.
- INA -3.42% profit warning.
- SYA -4.23% profit taking.
- BOQ -6.33% ME disappoints on NIM and competition.
- AMS -18.33% CEO gone after decline to move to Melbourne.
- HIO -5.71% profit taking.
- TVL -6.06% slide continues.
- Speculative stock of the Day: Megado (MEG) +77.27% great code. Acquisition of US High Grade rare earth project.
In the News
- Uniti Group (UWL) – has entered a scheme implementation deed with Morrison / Brookfield Consortium at 500c.
- Develop Global (DVP) – after being awarded a mining contract for the Bellevue Gold Mine.
- AGL Energy (AGL) signs a first-of-a-kind ‘virtual battery’ deal with Neoen. The seven-year deal will help AGL keep power supplies stable as AGL will have virtual access to a large portion of Neoen’s Capital battery being built in the ACT.
- Iluka Resources (ILU) downgraded to sell from neutral at Citi
- Allkem (AKE) reports Q3 production; plans to increase lithium production 3-fold by 2026. ts operations at Mt Cattlin, Western Australia, earned $US143.8m in the March quarter, selling spodumene concentrate at an average of $US2178 a dry metric tonne. It said June quarter pricing was already about $US5000 a tonne. Its lithium brine mines at Olaroz, Argentina, sold 3157 tonnes (44% battery grade carbonate) at an average price of $27,236 a tonne FOB. Total sales for the quarter reached $US235m.
- CIMIC Group (CIM) reports Q1 net profit of $108m.
- Transurban Group (TCL) reports Q3 Traffic ADT performance +0.4% YoY. CEO says more people are driving to the office.
- Netwealth Group (NWL) provides Q3 update: funds under administration $57.59bn vs quarter-ago $56.65bn.
- Talga Group (TLG) commences new 30-hole drilling program at Vittangi graphite project.
- Bank of Queensland (BOQ) half-yearly results. First-half profit increased 38% to $212m beating the consensus of 192.3m, with a net interest margin of 1.74% vs 1.78% consensus. Interim dividend of 22c.
- Monadelphous Group (MND) secures new contracts and extensions totalling $230m.
- Woodside Petroleum (WPL) has followed up its application to list its shares in London with a similar application for a New York listing.
Economic News/Bond Markets
- The economy added 17,900 roles, well shy of the 30,000 predicted, while the unemployment rate remained at 4%.
- Full-time roles rose by 20,500, while part-time positions fell by 2,700
- The underemployment rate fell 0.2% points to 6.3%
- Underutilization decreased 0.3% points to 10.3%
- The participation rate held at 66.4%
- Singapore GP tickets sold out within six hours. The power of Netflix and DTS. Three-day hospitality packages are priced at around US$10,000.
- The Bank of Korea raised its seven-day repurchase rate by a quarter percentage point to 1.5% in the board’s first-ever decision without a governor in place. The nominated new Governor Rhee Chang-yong has made clear he sees inflation as a pressing concern ahead despite not being confirmed until April 19th.
US and European News
- Marine Le Pen lays out her foreign policy for France should she win. France only rejoined NATO in 2009 after many years alone in the EU wilderness.
- Benettons and Blackstone offer EUR23 for Atlantia in a US14bn bid. It is a European airport and motorway operator. Implications for ALX perhaps.
- Technical analysts predict a rally in Bitcoin. Technical indicators some suggest would see Bitcoin have a short-term bounce to as high asUS $51,000 if it can break above 200MA at US$48,000.
- Amazon has hit its customers in the US with a fuel surcharge to counter rising transport costs.
- JPMorgan’s CEO Says ‘Powerful Forces’ Threaten U.S. Economy.
- US and Chinese bond yields converge as China looks to cut rates and US to raise rates.
- Turkey’s CPI data for food and non-alcoholic beverages showed a rise of 70.3% year over year for March. Official interest rates in Turkey now stand at 14%.
Putin visits a fortune teller and asks her what will happen in the near future.
She says; “I see you riding in a limousine through a large crowd, the people are happy, laughing and cheering, jumping for joy, hugging each other and all have big smiles on their faces!”
Putin asks her; “Am I waving at them?” No she says, the coffin is closed!”
Clarence is off to the Outback for 10 days…back 27th April…